Most graduates never clear it. See what you will actually repay before the loan is written off, and how much gets wiped.
Thresholds and write-off rules for 2026/27 · last updated 19 July 2026 · figures from gov.uk
A student loan is not really a debt. It behaves like a graduate tax that stops: you pay a fixed share of what you earn above a threshold, for a fixed number of years, and whatever is left is cancelled.
You repay 9% of everything above your plan's threshold (6% on a Postgraduate loan), and nothing at all on income below it. Repayments come out of your pay automatically, like tax. If your income drops below the threshold, they stop.
| Plan | You repay above | Rate | Written off after |
|---|---|---|---|
| Plan 1 | £26,900 | 9% | 25 years |
| Plan 2 | £29,385 | 9% | 30 years |
| Plan 4 (Scotland) | £33,795 | 9% | 30 years |
| Plan 5 | £25,000 | 9% | 40 years |
| Postgraduate | £21,000 | 6% | 30 years |
The write-off clock starts the April after you leave your course, not the day you take the loan.
Interest is added to the balance the whole time. If your repayment is smaller than the interest, the amount you owe goes up every year even though you are paying every month. That is not a mistake, and it is the normal experience for most Plan 2 and Plan 5 borrowers.
This matters for one decision only: whether overpaying is worth it. If you are heading for write-off, every extra pound you throw at the loan is a pound you would never have had to pay. If you will clear it anyway, overpaying saves genuine interest.
Projecting 30 or 40 years forward means guessing inflation for 30 or 40 years, and small errors compound into nonsense. So this model works in real terms instead. Your salary, the threshold and the balance all stay in today's money, which is consistent because the thresholds are uprated over time too. The "pay rises above inflation" figure is real growth: 2% means your pay grows 2% faster than prices, which is roughly the long-run UK average and can be set to 0.
Student loan interest is defined relative to RPI, so once you strip inflation out, what is left is small and stable. Plan 1, Plan 4 and Plan 5 charge RPI, which is 0% in real terms. Postgraduate loans charge RPI plus 3%, so 3% real. Plan 2 slides from RPI at the repayment threshold up to RPI plus 3% at £52,885, so between 0% and 3% real depending on your salary. That is why a 0% real plan repays exactly what you borrowed if you clear it, and no more.
The total repaid and the amount written off are both in today's money, so they are directly comparable to your salary now. Interest is applied once a year rather than daily, and repayments are treated as annual, so the figures are a close approximation rather than a statement of your account.
Sources: gov.uk repayment thresholds and rates, gov.uk write-off rules and gov.uk Plan 2 interest. Thresholds apply from April 2026. Rates, thresholds and write-off rules are set by government and change; we re-check this page when they do.
Illustrative only, not financial advice. Figures are in today's money and assume your salary grows at the real rate you set, that you stay on one plan, and that thresholds continue to be uprated with prices. Interest is applied annually rather than daily. Your actual balance, plan and write-off date are held by the Student Loans Company: check your own account before making a decision, especially about overpaying.
See also the Take-Home Pay calculator, which includes student loan in your monthly figure.